Spot wholesale price for propane at Conroy on 12/11/2009 = $1.115/gallon
Retail price charged by Ferrellgas in San Diego County on the same day = $3.11.
200% mark-up. What a business. The Public Utilities Commission should be all over these guys.
<<its not all profit,they have to transport, store, payroll for the employees, medical etc. don't be so quick to call out the regulators. big diff between wholesale & retail. >>
So do retail gasoline stations, and their markup is about 20%. They have all the same expenses as propane dealers.
I don't use propane personaly but needed to make a 200 gallon purchase for a needy family. Went to local Rerrellgas and was quoted $2.99 per gallon. I stated that sounded high and they agreed but that's the price take it or leave it. Went down the street to Dowdle gas and purchased 200 gallons for $1.59 gallon. How does Ferrell gas stay in businees like this?
As your definition states: "Supplier" means a person or corporation, other than a public
utility, who sells propane and arranges for its delivery to the operator's tank.
I cleary states OTHER THAN A PUBLIC UTILITY. You can try to spin doctor it, but FerrellGas Retail operations are not a public utility, they don't have a rate base, they aren't granted a monopoly. They supply a product that is often used as an alternative to natural gas, which is typically supplied by a utility.
If you don't like FGP's prices, you can shop around. Now, granted, consumers are protected against predatory "bait and switch" shennanigans and other misleading actions.
I retract my previous statement. I do pay a tank rental fee (and have) for the past 2 years. (The 1st 4 years were free.) It's a nominal $26 and change, but not outrageous.
This summer, they'll be over to paint it.
For the record, I've never paid a "propane rental" fee. They try to charge me every year, but I just call and tell them to pull it, where upon it's waived. Think tough and they bend.
Please don't spread the word. I'd rather have them operate this way and continue to reap the profits off others.
Great dividend and stable coverage of the debt.
<<FerrellGas is not a utility>>
PUBLIC UTILITIES CODE
4451. As used in this chapter:
(a) "Supplier" means a person or corporation, other than a public
utility, who sells propane and arranges for its delivery to the